PENSIONS AND LIFETIME ISA DEATH BENEFITS COMPARED
Pensions have advantages in relation to death benefits. The benefits from a pension are normally outside of the member's inheritance tax (IHT) estate whereas with a LISA they will form part of the estate. It is also possible to pass pension funds down through the generations outside of anyone's estate, while keeping the funds invested in tax efficient beneficiary's drawdown. As with the standard ISA, on death the allowance can pass to a spouse but it doesn't offer the wider IHT planning options and advantages of a pension.
Article taken from TECHTALK APRIL 2017